Banxa Reports Second Quarter Financial Results and Record Setting Revenue

 

Highlights:

  • Total Transaction Value (TTV) for December 2020 six months period increased by 780% to $195m from $25m for the same period in 2019
  • Revenue for the six months period increased by 124% to $7,399,281 from $3,308,586 for the same period in 2019
  • Revenue for the three months period increased by 228% to $4,496,380 from $1,371,529 for the same period in 2019
  • Adjusted EBITDA Profit of $95,959 for the three months period ending December 2020
  • December 2020 Quarter vs September 2020 Quarter TTV growth increased by 32% from $84m to $111m
  • $12.8m in Current Assets (Cash, Accounts Receivable and Coin Inventory)
  • Increase in Inventory holding; 136 Bitcoins as of December 31, 2020

TORONTO and MELBOURNE, Feb. 25, 2021 /CNW/ - BANXA (TSXV: BNXA) ("BANXA" or "Company") a Payment Service Provider (PSP) focused on providing clients safe, compliant access to the digital assets market, is pleased to announce it has recorded its maiden adjusted EBITDA profit since listing.  The Company anticipates continued revenue growth as the demand for Bitcoin may increase and recognizes that even in volatile markets, our digital system may be increasingly in demand as the general public wants to convert their fiat currency to digital currency and digital currency to fiat.

Banxa had its initial public offering on January 6, 2021, and is the only Payment Service Provider (PSP) serving the digital asset industry to be publicly traded anywhere in the world.

Founder & Chairman Domenic Carosa stated, "I am pleased to see the financial performance of the business improving across all key metrics. I am confident that moving forward we will continue to demonstrate to our loyal shareholders, customers, network and family that we are steadfast in our mission to build the bridge between the existing financial system and the emerging, expanding digital asset world."

CEO Holger Arians stated "Our capable team continues to work tirelessly in order to drive the business forward. I am excited with the results to date with the realization that the industry is still in its infancy. I see opportunity for organic growth as we continue on our mandate of onboarding the masses to digital currencies."

  • Revenue for the three months ended December 31, 2020, was 4.5 million AUD compared with 1.4 million AUD for the same period in 2019, an increase of 228%. Revenue for the six-month period ended December 31, 2020, was 7.4 million AUD compared with 3.3 million AUD for the same period in 2019, an increase of 124%.
  • Gross profit for the three months ended December 31, 2020, was 0.9 million AUD compared with 0.5 million AUD for the same period in 2019, an increase of 71%. Gross profit for the six-month period ended December 31, 2020, was 2.1 million AUD compared with 0.7 million AUD for the same period in 2019, an increase of 203%.
  • Adjusted earnings before interest, taxes, depreciation and amortization for the three months ended December 31, 2020, totalled 0.1 million AUD compared with a negative EBITDA of 0.5 million AUD for the same period in 2019.
  • Net loss for three months ended December 31, 2020 totalled 0.5 million AUD compared with net loss of 1.3 million AUD for the same period in 2019. Net loss for six months ended December 31, 2020, was one million AUD, compared with net loss of 1.9 million AUD for the same period in 2019.

Adjusted EBITDA is a non-IFRS financial measure that we calculate as net income (loss) before tax excluding depreciation and amortization expense, share based expense, unrealized gain on inventory, finance expense and listing expense. Adjusted EBITDA is used by management to understand and evaluate the performance and trends of the Company's operations. The following table shows a reconciliation of adjusted EBITDA to net income (loss) before tax, the most comparable IFRS financial measure, for the three and six months ended 31 December 2020 and 2019:

         
 

Six months ended
31 December 2020

Six months ended
31 December 2019

Three months ended
31 December 2020

Three months ended
31 December 2019

Net income (loss) before tax

$(908,045)

$(1,538,530)

$(468,335)

$(698,188)

Depreciation and amortization

16,175

309,739

8,724

154,869

Share based expense

100,641

-

100,641

-

Unrealized gain on fair value of inventory

(2,364,622)

-

(2,372,860)

-

Finance expense

181,703

-

137,276

-

Listing expense

2,690,513

-

2,690,513

-

Adjusted EBITDA

(283,635)

(1,228,791)

95,959

(543,319)

The company has granted 200,000 ESOP options to long term employees of the Company. The options have an exercise price of CAD$2.15 and can be exercised up to 31st December 2025. Thorney Technologies Ltd and Tiga Trading Pty Ltd have agreed to extend their loan facility for a further period of 60 days in exchange for a further 100,000 warrants prices at CAD$2.20 and can be exercised for a period of 2 years from issue.

ON BEHALF OF THE BOARD OF DIRECTORS

Per:     "DOMENIC CAROSA"
Domenic Carosa
Chairman (1-888-218-6863)

About BANXA

BANXA HOLDINGS INC. (TSX-V:BNXA is a Payment Service Provider (PSP) with a mission is to build the bridge between traditional financial systems, regulation and the digital asset space. Our goal is to onboard the general public to digital currency by building a fully compliant payment infrastructure that enables simple and secure conversion of fiat currency to digital currency. (IE.,USD/CAD to BTC/ETH) Banxa has offices in Australia and the Netherlands. For further information go to www.banxa.com "

This news release may contain "forward-looking statements" within the meaning of applicable Canadian securities laws.  Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. These statements generally can be identified by the use of forward-looking words such as "may", "should", "will", "could", "intend", "estimate", "plan", "anticipate", "expect", "believe" or "continue", or the negative thereof or similar variations. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause future results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. BANXA's statements expressed or implied by these forward-looking statements are subject to a number of risks, uncertainties, and conditions, many of which are outside of BANXA's control, and undue reliance should not be placed on such statements. Forward-looking statements are qualified in their entirety by the inherent risks and uncertainties of the Company's business, including: BANXA's assumptions in making forward-looking statements may prove to be incorrect; adverse market conditions, including risks related to COVID-19 and risks that future results may vary from historical results. Except as required by securities law, BANXA does not assume any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For Further Information, see www.banxa.com

 

SOURCE Banxa Holding Inc

For further information: Investor Relations: North America: +1 (604) 609 6169, International: +61 451 744 080, Email: Investor@banxa.com; Lytham Partners, LLC, Ben Shamsian, New York/Phoenix, Email: shamsian@lythampartners.com; Media Contacts: Liam Bussell, Head of Corporate Communications, Email: Liam@banxa.com

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